Warren Buffett bets on Alphabet to capture the AI surge

Alphabet now ranks as the third-largest position in Berkshire’s portfolio, a development that underscores a shifting strategy for the firm. While Buffett spent decades avoiding the tech sector in favor of predictable, tangible businesses, his recent embrace of Alphabet—and earlier, Apple—suggests a new appetite for high-growth tech leaders. The investment was finalized through a private placement earlier this year, a deal Abel initiated after consulting with Buffett.

The two companies share a philosophical foundation, as Google’s leadership famously modeled its decentralized structure on Berkshire’s own business model after visiting Omaha nearly two decades ago. Abel, who maintains a regular dialogue with the 96-year-old chairman, noted that their working relationship remains tight, with the two frequently dissecting the performance of Berkshire’s vast array of subsidiaries. Despite stepping back from the CEO role, Buffett remains deeply involved, recently showing a keen interest in the firm’s international expansions, including his active oversight of Berkshire’s growing interests in Japan.